Mbabane: The outbreak of Coronavirus has hit hard on the economy of the Kingdom of Eswatini as the country’s fiscal deficit has increased from 4.3% to 9.1% and arrears grew to USD 312 million, resulting to the economy to fall drastically by 6.7%.
This was revealed by the Prime Minister Ambrose Mandvulo Dlamini when addressing the virtual United Nations (UN) High level Event on Financing for Development in the era of COVID-19 and beyond. Dlamini presented the address on behalf of His Majesty King Mswati III.
Dlamini said the pandemic came at a time when the country has already passed the E24 Billion annual budget for the year 2020/21. The pandemic has forced the country to divert funds to the fight against the spread of the coronavirus in the country. The funds were diverted into identifying health facilities to be used and procuring of Personal Protective Equipment (PPEs) for patients and health workers. The government has also established programmes for distribution of food for the people who have been greatly affected by the outbreak of Coronavirus as most workers were laid off due to closure of businesses more especially in the Small Medium Enterprises (SMEs).
The Premier said COVID 19 came at a time when the Kingdom is continuing with the fight against HIV, Malaria and TB. These have caused a big strain on our National Budget. “As we address the issue of COVID 19, the country has been following all the guidelines of the World Health Organization” said Prime Minister.
Dlamini went on to say as a small economy, the Kingdom of Eswatini does not have huge reserves from where draw funds can be drawn to finance the country’s budget. The only Reserves available is the 3-month import cover.
Dlamini appealed to the UN to do everything possible to mobilise resources for countries like Eswatini. He also urge the UN to speak for all countries of the World, particularly developing countries, to be assisted during these challenging times.
Dlamini expressed the hopes that through the support of the UN, the Kingdom can access financial assistance to support budget for the next financial year 2021/22 so be to enable to address social and economic landscape.
Dlamini added that Implementation of Sustainable Development Goals (SDGs) has always been a priority for the medium term and has been done with the assistance of development partners. “I wish to appeal to the UN and other development partners to continue to assist Eswatini to finance SDG implementation” said Dlamini.
The Prime Minister commended the positive response of international organizations who are offering concessional funding to all countries and waiving their stringent conditions so that countries can have immediate access to funding, irrespective of their economic status. “I wish to implore these organizations to suspend debt service obligations and waive interest payments during this period to allow countries to re-constitute their affairs and develop appropriate plans for adjustment,” said Dlamini.
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